Vocal For Local Initiative Taken In Food Processing Sector

As part of Atmanirbhar Bharat Abhiyan – Vocal for Local Initiative in food processing sector, Ministry of Food Processing Industries (MoFPI) is implementing a centrally sponsored “PM Formalisation of Micro food processing Enterprises (PMFME) Scheme” for providing financial, technical and business support for setting up / upgradation of micro food processing enterprises in the country. The scheme is operational for a period of five years from 2020-21 to 2024-25 with an outlay of Rs. 10,000 Crore. Till date, 27,003 Loans have been sanctioned in the country under credit linked subsidy component of PMFME Scheme, out of which 5864 loans sanctioned in the State of Maharashtra. The State-wise details are at Annexure.

The PMFME scheme is designed to address the challenges faced by the micro enterprises. The scheme aims to enhance the competitiveness of new and existing individual micro-enterprises in the unorganized segment of the food processing industry and promote formalization of the sector. The details of assistance available to Micro Food Processing Enterprises under PMFME Scheme:

(i). Support to Individual / Group Category Micro Enterprises: Credit-linked capital subsidy @35% of the eligible project cost, maximum ceiling Rs.10 lakh per unit;

(ii). Support to SHGs for seed capital: Seed capital upto Rs. 40,000/- per member of SHG engaged in food processing for working capital and purchase of small tools subject to maximum of Rs. 4 lakh per SHG.

(iii). Support for Common Infrastructure: Credit linked capital subsidy

@35% subject to maximum of Rs. 3 crore to support FPOs, SHGs, Cooperatives and any Government agency for setting up of common infrastructure. The common infrastructure will also be available for other units and public to utilize on hiring basis for substantial part of the capacity.

(iv). Branding and Marketing Support: Grant upto 50% for Branding and Marketing to groups of FPOs/ SHGs/ Cooperatives or an SPV of micro food processing enterprises.

(v). Capacity Building: The scheme envisages training for Entrepreneurship Development Skilling (EDP+): program modified to meet the requirement of food processing industry and product specific skilling.



Capacity building and training is a critical component of the scheme in technical upgradation and formalization of micro food processing enterprises. The focus areas for capacity building are entrepreneurship development, compliance of Food Safety and Standards Authority of India (FSSAI) standards and general hygiene and other statutory compliances. District Resource Persons (DRPs) have been appointed to provide handholding support to micro food processing enterprises for the compliance of FSSAI and other statutory requirements.

State-wise number of loans sanctioned under credit linked subsidy

component of PMFME Scheme